Liability and equity accounts

In this video we will analyze the liability and equity accounts. Remember that liabilities and net worth is the origin of money.

These are the main elements of the liability and equity accounts:

Net worth: the money with which the company has started to work and the money that it has generated. The net worth is not due, it does not have to be returned.

• capital: the shareholder money they put in early to run the company and the capital increases they did.
• Bookings: the business profits that have not been distributed and they have decided to reinvest in the company.
• exercise result: losses or gains that the company has had.

Current liabilities: is what the company owes to other companies or individuals in the long term (in more than one year)

• Long term debts: the debts you have.
• long-term providers: to whom does the company owe.

Non-current liabilities: debts that the company has to pay in the short term (in less than one year)

• short term debts: what the company owes in the short term
• short-term providers: who owes it to in the short term

In the video I will explain all this in much more detail and I will also tell you how the company has to target what it buys and what it sells.

In addition, I have left you some printable exercises with their solutions so you can practice what you learned in today's lesson. I hope they help you understand these concepts of Economics!